Abuja, Eko, 6 other Electricity DisCo to pay N628 Million Fine for Overbilling Customers

• The Nigerian Electricity Regulatory Commission fined eight electricity distribution companies a total of N628.03 million
• Electricity distribution companies in Abuja, Eko, Enugu, Ikeja, Jos, Kaduna, Kano, and Yola were affected
• Reports showed the affected DisCos had not adhered to NERC's monthly energy caps, which led to the suspension

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

Eight Electricity Distribution Companies (DisCos) have been fined a total of N628.03 million by the Nigerian Electricity Regulatory Commission (NERC) for failing to comply with the cap on anticipated billing for unmetered customers.

Abuja, Eko, Enugu, Ikeja, Jos, Kaduna, Kano, and Yola electricity distribution companies are the impacted DisCos.

Leadership reported that Section 34(1)(d) of the Electricity Act 2023 (EA 2023) was the basis for the sentence.

In a statement released on Thursday, NERC stated that the sanction came after an examination of billing procedures from July to September 2024 showed that the impacted DisCos had not complied with NERC's monthly energy caps.

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The purpose of the caps was to match the consumption levels of metered customers on the same feeder with the predicted bills for unmetered users.

The regulator claimed that the penalty amounted to 5% of the total overbilling for the reviewed period.

By May 15, 2025, which is the end of the April billing cycle, NERC required the impacted DisCos to give credit adjustments to all overbilled consumers in addition to financial penalties.

In Nigeria's energy sector, NERC reaffirmed its opposition to arbitrary billing practices and emphasized its dedication to customer protection and regulatory compliance.

“The public may recall that in 2020, the Commission issued the Order on Capping of Estimated Bills (Order No: NERC/197/2020) and subsequently issued monthly energy caps which aimed to align the estimated bills for unmetered customers with the measured consumption of metered customers on the same supply feeder.

“A review of DisCos’ billing of unmetered customers for July – September 2024 (2024/Q3) revealed non-compliance with the monthly energy caps issued by the Commission.

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“The non-compliant DisCos have been sanctioned to pay fines amounting to six hundred and twenty-eight million, thirty-one thousand, five hundred and eighty-three naira and ninety-four kobo (N628,031,583.94), which is equivalent to 5% of the naira value of the gross overbilling for the period under review.

By May 15, 2025, the Commission has also ordered the DisCos to provide all consumers impacted by the overbilling with comparable credit adjustments.

The Commission reiterates its dedication to consumer protection and regulatory compliance in the Nigerian electricity supply sector.

Nkechi Felix said,

"I think that what the regulator can do is to ensure that te money actually gets back to the pocket of the consumers."

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The affected countries include Togo, Benin Republic and the Niger Republic.

The development comes amid a high level of indebtedness and non-remittance of electricity bills supplied to the countries over the years.

Proofreading by Nkem Ikeke, copy editor at Legit.ng.

Source: Legit.ng